Meme stock Bed Bath & Beyond fights to stay afloat

US home goods retailer and “meme stock” Bed Bath & Beyond plans to raise about $1bn (£830m) from investors in a final attempt to avoid bankruptcy.

It hopes to generate additional funds to cover overdue debt payments and loan defaults by selling shares and warrants to institutional investors.

It would “likely file for bankruptcy protection” unless the offering is completed, the company revealed in a securities filing on Monday.

Bed Bath & Beyond was among the so-called “meme stocks” targeted by online trading forums which saw share prices surge in 2021.

However, Bed Bath & Beyond has struggled amid drastically falling cash piles and revenue since lenders last month declared it to be in default.